In this episode, our co-founder Eric Asuma sits down with Safaricom CEO Peter Ndegwa to discuss the company’s recent half-year financial results and the impact of Ethiopia’s recent currency devaluation on group earnings.
- •The Ethiopian Birr depreciated against the dollar by 106%, closing September at 118.99 from 57.69 in June 2024.
- •Ethiopia adopted a free-floating currency in July aimed at reforming the financial sector to secure funding from the IMF.
- •Safaricom has lengthened its break-even target in Ethiopia by one year to March 2027, although it sees the impact of the birr’s exchange rate correction being much lower in full year results.
Ndegwa shares insights on how, despite a challenging macroeconomic environment, Safaricom’s net income would have been up 21% if not for the currency depreciation. Safaricom Ethiopia has adjusted its breakeven timeline, extending it by one year to 2027.
The discussion also highlights M-Pesa’s impressive growth in Ethiopia, exploring emerging use cases that are driving market expansion.
Ndegwa provides his take on Safaricom’s stock performance on the Nairobi Stock Exchange, reflecting on factors like foreign investor flight and macro issues that have impacted share value despite recent market rebounds.
He also shares updates on Safaricom’s upcoming products in wealth management, insurance, and other financial services designed to help their customers to save and build liquid wealth.
Finally, Ndegwa shares insights on potential collaborations with SpaceX/Starlink, exploring new frontiers in satellite technology and connectivity.
Tune in to hear firsthand how Safaricom navigates growth and challenges in both local and international markets.
